FVC1 - GLOBAL BUSINESS.
Designed to boost confidence and grades!
Liberalization of the trading system - Answer: lowering and/or removing trade barriers
such as tarrifs, quotas, and subsidies
Capital markets - Answer: a stock exchange where long term financial instruments such
as stocks and bonds can be bought and sold
Transparency - Answer: a system of full disclosure and openness that aims to avoid
any semblance of corruption and cronyism
Accountability - Answer: a system of responsibility in which an authority, such as the
government, is answerable for its actions
Adaptive institutions - Answer: government organizations that create strong incentives
for private investment and operate under a system of checks and balances
Sustainable development - Answer: economic development that meets the needs of the
present generation without compromising the ability of future generations to meet their
own needs, whether environmentally, socially, or economically
Multipolar world - Answer: a world economy in which the engines of growth could
comprise several major industrialized and emerging economies, such as the US, the
EU, China, India, Brazil, Russia, and South Africa rather that the US alone
Economic reforms - Answer: economic policy changes that promote private sector
development, competitive markets, market pricing, freer trade, and deregulation
International monetary system - Answer: the global system of exchange rates and
international payments that enable countries and their citizens to purchase goods and
services from one another
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Emerging economies - Answer: countries that are implementing more open trade and
free market policies
Decoupling - Answer: a fundamental global shift in which industrialized country-
dependent developing economies begin to grow based on their own underlying
economic strengths rather than the ups and downs of the world's richest countries
Globalization - Answer: the socioeconomic reform process of eliminating trade,
investment, information technology, and cultural and political barriers across countries,
which in turn can lead to increased economic growth and geopolitical integration and
interdependence among nations of the world
The web - Answer: the world wide web, abbreviated "www" and commonly know as the
web; a system of interlinked documents contained and accessed via the internet
Bandwidth - Answer: the amount of data and other information that can be transferred
in a second via the internet
Digital divide - Answer: the perceived economic gap
Digital era - Answer: the period of transformation that adjusts lifestyles to make the
internet and wireless technologies a part of everyday life
Antitrust laws - Answer: national laws aimed at maintaining competition in all sectors of
the economy and preventing monopolistic behavior of firms
IMF - Answer: international monetary fund
The World Bank - Answer: aid the reconstruction of Europe after World War II;
conceived in Bretton Woods Conference in 1944
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, International monetary system - Answer: mission is to ensure stable national currencies
and encourage its members to eliminate foreign exchange restrictions that hinder trade
World Trade Organization - Answer: WTO, based in Geneva, Switzerland
Political union - Answer: the union created when member countries of an economic and
monetary union work closely with one another to arrive at common defense and foreign
policies and behave as a single country
Common market or single market - Answer: a market formed when member countries
of a customs union remove all barriers to allow the movement of capital and labor within
customs union
Spatial transformations - Answer: the process of allowing efficient geographic
distribution of business activities within and among countries
Customs union - Answer: a group of free-trade member countries that have adopted a
common external tariff with nonmember countries
Regional integration - Answer: implementation of a multitude of economic and/or
political steps by member states to increase their global competitiveness, including
preferential trade access
Economic geography - Answer: the study of principles that govern the efficient spatial
allocation of economic resources and the resulting consequences
Free-trade area - Answer: an area in which two or more countries agree to eliminate all
barriers to trade, such as tarrifs, quotas, and nontariff barriers like border restrictions,
while at the same time keeping their own external tariffs (within WTO guidelines) against
nonmembers
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
Designed to boost confidence and grades!
Liberalization of the trading system - Answer: lowering and/or removing trade barriers
such as tarrifs, quotas, and subsidies
Capital markets - Answer: a stock exchange where long term financial instruments such
as stocks and bonds can be bought and sold
Transparency - Answer: a system of full disclosure and openness that aims to avoid
any semblance of corruption and cronyism
Accountability - Answer: a system of responsibility in which an authority, such as the
government, is answerable for its actions
Adaptive institutions - Answer: government organizations that create strong incentives
for private investment and operate under a system of checks and balances
Sustainable development - Answer: economic development that meets the needs of the
present generation without compromising the ability of future generations to meet their
own needs, whether environmentally, socially, or economically
Multipolar world - Answer: a world economy in which the engines of growth could
comprise several major industrialized and emerging economies, such as the US, the
EU, China, India, Brazil, Russia, and South Africa rather that the US alone
Economic reforms - Answer: economic policy changes that promote private sector
development, competitive markets, market pricing, freer trade, and deregulation
International monetary system - Answer: the global system of exchange rates and
international payments that enable countries and their citizens to purchase goods and
services from one another
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,Emerging economies - Answer: countries that are implementing more open trade and
free market policies
Decoupling - Answer: a fundamental global shift in which industrialized country-
dependent developing economies begin to grow based on their own underlying
economic strengths rather than the ups and downs of the world's richest countries
Globalization - Answer: the socioeconomic reform process of eliminating trade,
investment, information technology, and cultural and political barriers across countries,
which in turn can lead to increased economic growth and geopolitical integration and
interdependence among nations of the world
The web - Answer: the world wide web, abbreviated "www" and commonly know as the
web; a system of interlinked documents contained and accessed via the internet
Bandwidth - Answer: the amount of data and other information that can be transferred
in a second via the internet
Digital divide - Answer: the perceived economic gap
Digital era - Answer: the period of transformation that adjusts lifestyles to make the
internet and wireless technologies a part of everyday life
Antitrust laws - Answer: national laws aimed at maintaining competition in all sectors of
the economy and preventing monopolistic behavior of firms
IMF - Answer: international monetary fund
The World Bank - Answer: aid the reconstruction of Europe after World War II;
conceived in Bretton Woods Conference in 1944
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, International monetary system - Answer: mission is to ensure stable national currencies
and encourage its members to eliminate foreign exchange restrictions that hinder trade
World Trade Organization - Answer: WTO, based in Geneva, Switzerland
Political union - Answer: the union created when member countries of an economic and
monetary union work closely with one another to arrive at common defense and foreign
policies and behave as a single country
Common market or single market - Answer: a market formed when member countries
of a customs union remove all barriers to allow the movement of capital and labor within
customs union
Spatial transformations - Answer: the process of allowing efficient geographic
distribution of business activities within and among countries
Customs union - Answer: a group of free-trade member countries that have adopted a
common external tariff with nonmember countries
Regional integration - Answer: implementation of a multitude of economic and/or
political steps by member states to increase their global competitiveness, including
preferential trade access
Economic geography - Answer: the study of principles that govern the efficient spatial
allocation of economic resources and the resulting consequences
Free-trade area - Answer: an area in which two or more countries agree to eliminate all
barriers to trade, such as tarrifs, quotas, and nontariff barriers like border restrictions,
while at the same time keeping their own external tariffs (within WTO guidelines) against
nonmembers
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
